Student ID: NP01BA4A170021
Assessment of Fundamental of Management
Module Code: MN4002NI
Module Leader: Mr. Sanjeeb Sangroula
Report on Ford Motor Company
Submitted to: Islington College
Kathmandu May 7, 2018
I am using this opportunity to express my gratitude to you who supported me throughout the course. I have taken efforts in this project However, it wouldnot have been possible without the kind support and help of many individuals. I would like to extend my sincere thanks to all of them and my deepest appreciation to all those who provided me the possibility to complete this report.
I would also like to thank our module teacher and lecturer Mr.Sanjeeb Sangroula to encouraging me every step. He inspired me greatly to work in this project. His willingness to motivate us contributed tremendously to our project.
Management is defined as the Organization and Coordination of the activities of a business in order to achieve defined objectives. Management consists of the interlocking functions of creating cooperate policy and organizing ,planning ,controlling and directing on organization resources order to achieve the objectives of that policy. Consequently many managers and employees fail to support TQM (Total quantity management) CITATION htt11 l 1033 (https://managementinnovations.wordpress.com/…/define-management-its-functions/). However in recent years, total quantity management has made a resurgence as companies learn how to make it work within their.
Total Commitment: Everyone in a company from the lower paid hourly worker to the company president must make a total commitment to TQM and make it a permanent part of the company’s culture.
Employment Empowerment: Frontline employees generally know much more about the needs of customers than their managers.
Fact Based Decision Making: TQM requires you to make decision based on quantitative data rather than hunches or feelings.
Continuous Impowerment: TQM encourages employees to always be on the look out for improvements to company systems processes and procedures and to make suggestions and take the initiative to effect changes.
Customer Focus: Instead of the company deciding what standards its customers should live within it products, TQM dictates that customers should be the ones who drive standards.
Integrating Product and Process: When companies develop new products, they should also develop new work processes to go along with them. CITATION kat09 l 1033 (williams, 2009) Computing Value Framework:
The Computing Value Framework according to Quinn, Rohrbaugh it is a theory that was developed initially from research conducted on indicators, Quinn and Rohrbaugh (1983) discovered two major dimensions underlying conception of effectiveness CITATION htt131 l 1033 (https://toughnickel.com › Business › Company Culture). The first dimension is related to organizational focus, from an internal emphasis on the well being and development of people in the organization to an external focus on the well being and development of the organization itself. The CVF got its name because the criteria within the four models at first seem to carry conflicting message.
Each quadrant of the framework represents one of four major models of organization and management theory (Quinn 1998):
Human Relational Model: This module include Places with great deal on emphasis on flexibility and internal focus and stresses cohesion , and human resources development as criteria for effectiveness.
Open System Model: Emphasizes flexibility and external focus and stresses readiness, growth, resourse acquisition and external support.
Rational Goal Model: Control and an external focus and views planning, goal setting productivity and efficiency as effectiveto the company.
Internal Process Model: Here also control and an internal focus and stresses the role of information management, communication, stability and control.
As we all know that since it was established, Ford motor company is an American automaker and the world’s fifth largest automaker based on world vechicles sales. The automaker was founded by Henry ford on June 16, 1903. Ford motor company would go on to become one of the largest and most profitable companies in the world as well as being one of the few to survive the great Depression controlled company in the world, the ford motor company has been in continuous family control for over 110 years ford now encompasses two brands ford and lincoin. CITATION htt06 l 1033 (https://www.npr.org/templates/story/story.php?storyId=5168769). The largest family controlled company in the world, the ford motor company has been in continuous family control for over 110 years ford now encompasses two brands ford and lincoin. Ford once owned 5 other luxury brands Volvo, land Rover, Jaguor, Aston Martin and Mercury. Over time these brands were sold to other Companies and Mercury was discontinued.
Ford’s best year was 2016. The automaker posted impressive earning and positive operating cash flow and launched 11 new vechicle models. Ford also announced the addition of 13 new electrified models over the next five years and doubled down on its investment in connectivity and mobility technologies so much so much that it launched ford smart. Mobility as a subsidiary dedicated into emerging mobility services. Like its domestic rival GM, ford has invested in autonomics model in commercial operation by 2021 but has taken a more incremental approach compared to relative upstarts like Tesla Motors. The ford company was founded in 1903 and is based in Dearborn, Mich.
PORTER’S FIVE FORCES:
CITATION htt06 l 1033 (https://www.npr.org/templates/story/story.php?storyId=5168769)IMPACT OF NEW ENTRANTS: While more entrants can give you more options to choose from, the unfamiliarity of new suppliers can cause some uncertainty.
AVAILABLE SUBSTITUTES: Knowing there are more options in the marketplace will you give you the leverage to negotiate with suppliers.
SUPPLIERS BARGAINING POWER: The more information you have on the market dynamics and overall marketplace, the better. For example, if demand for a product or the supplier’s input costs are falling and the suppliers ask for the same high price, you’ll know to negotiate aggressively.
BUYERS BARGAINING POWER: This knowledge will give you a better idea of how much effort you need to put into negotiations. If more of the forces and market characteristics benefit the supplier, you may need to spend more time and resources on negotiations and all overall sourcing process.
TOTAL SUPPLIERS AND MARKET SHARE CONCENTRATION: If there are only a few suppliers within a market, your choices will be more limited, forcing you to accept whatever price the suppliers charges. A larger number of suppliers give you leverage and increase your chances of negotiating better pricing.
SWOT AND PESTLE ANALYSIS:
SWOT: CITATION htt15 l 1033 (http://pestleanalysis.com/swot-analysis-of-ford/) Strength
– strong brand image
– Large customer base and high loyalty
– Global presence and a global supply
– Innovative engineering
– Limited network of production facilities
– Globally compared to competitors
– Slower innovation
– Production costs higher
– Market expansion globally
– Product development
– Emersing demand for small and effiecient vechicles in asian markets
– cost reduction
– Decreasing fuel prices
– Rising raw material prices
– Fluctuating exchange rafes
PESTLE ANALYSIS :
CITATION Che17 l 1033 (Cheshnotes, 2017)Political Factors – This factor indicates Political agendas weigh as a heavy factor for ford as environmental issues are heavily considered when food design new vechicles.
Socio-cultural forces – Automotive firms will always face customer biases on brands or labels.
Technological Factors – The factor with advances which help automotive companies to produce vechicles that are more fuel efficient, safer and better equipped with more accessories such as driver assist systems.
Environmental Forces – There is an increasing need to reduce pollution levels exerted on the environment by reducing exhaust emission level produced by motor vechicles.
Legal Forces – Automotive firms are subject to changing labour laws and union pressure set in place to promote adequate compensation to appropriate workers.
The challenges facing the company :
The business environment in which we operate is dynamic with the only constant being change. Adopting to this change is critical if business are to remain successful in this highly competitive environment with this in mind CITATION htt151 l 1033 (https://www.businessnewsaus.com.au/articles/the-greatest-challenges-facing-business-and-how-to-solve-them.html, 2015).
Political challenges effecting ford motor company :
Ford motor company is a multinational company, which has its operations in many countries so the political environment in these countries is very important to the company’s operations CITATION UKe15 l 1033 (UKessays, 2015).Analysing this shows that there is increased freedom for the company to penetrate in any growing markets in the globe which is a good opportunity. The political environment of the major ford motor company markets which includes Japan, Australia, America, and U.K are conductive for business operations. Looking at the current state of the political climate in the world, through globalization many government are forming alliances.
Economic challenges :industry negatively forcing some of the major automobile makers in the world.
The ford motor company has not been spared either. Economic challenges of the company needs to adjust the current economic conditions so as to survive and plan for come back during the boom period. The current economic for ford motor company is hard but it is recovering with time. This shows that although the current economic environment is not conductive the company can come up with the strategies that will protect it.
Social Challenges :
The factor which is important for the ford motor company on the social environment is the changes in the social classes in the world market. This is a great opportunity for the motor company to expand market in these countries.
As shown in the opportunities and threats analysis there are many key issues, the company for the company is that many of its competitors are also rebounding, and there are significant long-run changes in the automobile industry. Ford needs to determine a strategy that will take the company through the next decade, and improve the company’s competitive position. The company has four of the top fifteen best-selling cars in America, but also needs to set strategy globally, as many of the best automobile growth marlets are overseas. Another strategic consideration is that CEO Alan Mulally remains in the process of changing the organizational culture at ford, which had become stagnant and unresponsive to the changes in the industry environment.
In spite of having strong competition in market, Ford is still dominating the motor industry as well as their business strategies are quite strong for sustaing in this market. Ford motor is well positioned in worldwide market offering consumers a variety of vechicles incorporated with new levels of quality, safety, affordability performance and luxury that meet all needs, all while retainging Ford legacy for great value. Ford Motor Company has definitely shifted the view of what a car is today compared to 15 years ago, and social media has only helped expand the possibility of what a car company can do. By connecting with as many groups as possible, Ford can get people excited about their cars, and make them more excited when new vechicles are announced. At the North American International Auto Show (NAIAS), Ford announced a new program, called FordPass, that would allow Ford owners to gain benefits through their cars. These benefits, which are gained through an application on the owner’s phone, will only help expand the scope of what a car company will be able to do for the comsumer after a vehicle is purchased. In addition, services liking parking solutions, wil not require ownership of Ford vehicle, which shows the company’.
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http://pestleanalysis.com/swot-analysis-of-ford/. (n.d.). Retrieved november 4, 2015, from FORD company SWOT analysis: pestleanalysis.com/swot-analysis-of-ford/
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